Moneycontrol

Budget 2023Budget 2023

PARTNERS

  • Tata AIA Life Insurance
  • Hafele
  • Motilal Oswal
  • SMC Global Securities Limited
  • SBI Life
  • DSP Mutual Fund
Upcoming Event : LeapToUnicorn - mentoring, networking and fundraising for startups. Register now

NSE co-location case: SAT sets aside SEBI’s disgorgement order against exchange

NSE co-location case: In its order delivered on April 30, 2019, SEBI had directed NSE to disgorge Rs 624.89 crore at 12 percent interest per annum from April 2014 onwards. Disgorgement refers to the repayment of gains that have been made illegally.

January 23, 2023 / 04:06 PM IST
However, NSE will still have to bear the brunt of paying Rs 100 crore to SEBI's Investor Protection Fund on account of its failure to conduct due diligence.

However, NSE will still have to bear the brunt of paying Rs 100 crore to SEBI's Investor Protection Fund on account of its failure to conduct due diligence.

The Securities Appellate Tribunal (SAT) on Monday (January 23) delivered major relief to the National Stock Exchange when it set aside SEBI's April 2019 order directing it to disgorge Rs 1,000 crore for committing violations of stock exchanges and clearing corporation regulations.

In its order delivered on April 30, 2019, the market regulator had directed NSE to disgorge Rs 624.89 crore at 12 percent interest per annum from April 2014 onwards.

However, NSE will still have to bear the brunt of paying Rs 100 crore to SEBI's Investor Protection Fund on account of its failure to conduct due diligence, as per the SAT order.

Additionally, the orders passed against former MD and CEO of NSE, Ravi Narain and Chitra Ramkrishna to disgorge 25 percent of their salaries to the Investor Protection Fund have also been set aside. Narain was asked to disgorge 25 percent of his salary drawn during FY11 to FY13 and Ramkrishna was asked to disgorge her salary drawn for FY14.